Finding Text
Finding No.: 2022-005 Federal Agency: U.S. Department of the Treasury Pass-Through Entity: CNMI Government Assistance Listings Program: 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Nos.: CNMI22028 and CNMI22027 Area: Reporting Questioned Costs: $-0- Criteria: Based on the subrecipient agreement from the CNMI Government as the pass-through entity, the subrecipient agrees to submit quarterly reports to the Department of Finance Office of the Secretary no later than fifteen (15) days following the end of the quarter. Condition: All FY 2022 quarterly reports for agreement no. CNMI22028 were prepared and submitted six months after the fiscal year had ended and only after auditor inquiry during fieldwork. Quarterly reports for agreement no. CNMI22027 were prepared and submitted eight months after the fiscal year had ended and after fieldwork was completed. Cause: CPA lacks internal controls over compliance with applicable reporting requirements. CPA failed to timely request for its subrecipient agreement from the CNMI Government after the funds were disbursed to them in FY 2021. Effect: CPA is in noncompliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: CPA should establish and implement internal controls over compliance with applicable reporting requirements. Prior to expending federal funds from a pass-through entity, responsible personnel should obtain and read the terms and conditions of the subrecipient agreement. Views of Responsible Officials: Management states agreement. Refer to separate Corrective Action Plan.